How to help seniors manage their money?
Many parents do their best to teach their children how to manage their money effectively, with piggy banks, prizes and other tools designed to help their children understand the value of money. Children who are now 40 or 50 may have to think about helping their parents manage their money, in the final stage of their lives. This can be difficult in some cases, but there are some things that can be done to facilitate the process.
Impact of aging on financial management:
As in all other aspects of your life, age can reduce a person’s ability to manage their money and make financial decisions. Old age can make resolving financial situations more difficult, as older people simply have less energy to devote to practical issues, such as paying bills or bank accounts. In many cases, older couples divide several financial tasks between them. The wife may pay the bills and make the purchases, while the husband makes the investment decisions. Although this may work well while both spouses live, it means that when one of the spouses dies, the widower may have to immediately face a series of financial tasks that he is not able to perform.
Face the problem:
There are many issues that should be considered when it comes to helping parents with their money. One good aspect, to begin with, is health and insurance coverage for long-term care. If parents are not adequately covered with 2019 Medicare Supplement Plans in this area, it might be a good idea to pay for them, if possible, because the cost of coverage may be minuscule compared to the expenses that may arise in the future without it. The next step should be to make an honest assessment of your savings. The investment portfolios should be analyzed to see if they fit the risk tolerance level and investment objectives of our parents since they can not necessarily rely on their financial advisors for this.
How to help your parents?
In many cases, it is a good idea for at least one of the children to join their parents ‘accounts as an interested third party which provides an informal means of supervising their parents’ finances. This can alert them to potential problems, such as surcharges for late payments, late payments of mortgages, public services or other obligations; or large savings withdrawals, for reasons not specified. Of course, establishing the payment of bills by automatic debit and conducting banking operations over the Internet can help to solve these problems.